Monthly Archives: February 2019

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Santos shares sink 4% on lower sales outlook

Investors wiped almost 4 per cent from Santos’ share price on Thursday morning as it laid out its 2018 strategy.
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While production levels are forecast to remain stable, the energy company predicted a significant fall in sales volume for the year ahead.

The announcement saw its share price sink from a 2017 high of $4.78 to a daily low of $4.57. It was trading at $4.625 at 11.20am.

The company has kept to previously stated 2017 forecasts, expecting production levels to hit the upper end of 58 to 60 million barrels of oil equivalent (mmboe) and sales of 79 to 82 mmboe.

Chief financial officer Anthony Neilsen forecast production to remain steady for the next decade at between 55 and 60 mmboe.

However, sales volumes are expected to fall next year to between 72 and 78 mmboe, “primarily due to lower forecast third-party gas sales volumes and lower non-core asset volumes,” Santos said in a statement.

Santos has pushed the operational price at which it breaks even down this year to $32 a barrel.

The company has expanded its core asset focus to now include the Narrabri coal seam gas project in NSW, beyond the existing pillars of its Gladstone liquefied natural gas project (GLNG); PNG LNG; northern Australia, which includes its Barrosa, Petrel-Tern and Crown Lasseter gas development projects; and additional projects in Queensland’s Cooper Basin.

“This core portfolio is positioned to provide stable base production for the next decade and positive free cash flow in an oil price range of $US35 to $US40 a barrel, pre-major growth opportunities,” Santos chief executive Kevin Gallagher said.

GLNG hitting full-load installed capacity of 6 million tonnes a year by the end of 2019 has been pointed to as a key factor for Santos, which could offset natural declines of some of its assets.

Citibank analysts believe the company’s future market direction depends on its continued strong performance and sales volumes at this project.

“Share price performance is to a large degree hinged on cash-flow generation (GLNG cash flow outlook); an orderly ramp-up of Roma to nameplate capacity should de-risk long-term production,” Citi analysts said.

Santos is also looking to open two potential projects in the Northern Territory, at McArthur and Amadeus.

Santos’ executive vice president for marketing and trading, Phil Byrne, called Amadeus exploration a “basin opener”.

The company also plans to expand drilling within the Cooper Basin alongside Beach Energy to grow production, and provide increased levels of gas supply for the domestic market.

“The Cooper Basin is one of the world’s super basins,” Santos executive vice president, onshore upstream developments, Brett Woods said.

Santos has already committed to supplying 30 petajoules of domestic gas for 2018 and 2019.

This story Administrator ready to work first appeared on Nanjing Night Net.

Five tips to achieve early retirement

Your super is available from age 60. But what if you wanted to retire earlier?
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Perhaps you dream of leaving the normal full-time paid work force at age 40 and working as a fishing guide six months of the year in Northern Australia. Or helping your daughter care for your grandkids. Maybe you want to become an independent film maker.

Early retirement does not mean retiring from life. Rather it’s escaping the captivity of the workforce and spending your time as you wish.

I’ve come up with five things you could do to gain the financial autonomy needed to retire early. 1. Understand your livings costs

Is all of your spending really necessary? For you to be in a position to quit your job, you need to know how much money you require to live. Is it $30,000 per year or $80,000 per year? Here’s some overly simplistic maths for you, just to illustrate:

If you wanted to build up a portfolio of investments that would generate $30,000 per year for you to live off, rising with inflation, and with a high level of confidence that it won’t run out in your life time, you would need investments worth approximately $750,000.

If instead you needed $40,000 per year, that would rise to around $1million. So to have just an extra $10,000 per year, you need to save an extra $250,000.

To flip that, if you could reduce your living expenses by $10,000, the amount you need to save to retire early is reduced by $250,000. How much sooner could you escape your current employment captivity? 2. Save

It’s one of the simplest financial rules around yet one so many of us struggle with it – you must spend less than you earn.

Know how much you have coming in, after tax. Check that against your expenses. What is the surplus? Now put this to work. This is cash flow management.

Savings could involve extra payments on your home loan, or building up cash to invest. 3. Invest

First you save, but then what to do with those savings? Sure you could leave it in the bank, but with minimal interest, and tax on that interest too, you’re going to have to do a lot of heavy lifting to get yourself to the point of financial autonomy and early retirement. There are all sorts of considerations here around investment time frame, the use of debt, and diversification, and so it is really important that you seek out professional impartial advice.

But a key concept to grasp is that risk and reward are always linked. You can take no risk and leave your money in the bank. But if you had the capacity to save $2000 a month and you wanted to build up $500,000 in savings to become financially independent that would take you about 21 years.

If instead you invested in a share portfolio that earned 7 per cent a year on average, it would take less than 14 years to reach the same goal. So you are achieving your goal to retire early seven years sooner by taking some risk. Or to flip it, if you want to take no risk, the price you pay is seven years of your life. 4. Minimise or avoid debt

To clarify straight up, not all debt is bad. Most of us could never buy a house in Australia without borrowing. And because any gains made on the increase in value of your home are tax free, usually borrowing to buy a home is a financially wise thing to do if that’s affordable for you. Similarly sometimes debt to help fund good quality investments can make sense.

But the debt to avoid is debt to fund consumption. Credit card debt to buy clothes or a holiday. A loan for a new car when maybe something a few years old would have done.

As touched on earlier, if you are to retire early, you need to get your expenses down and your savings up. Loan repayments push against this objective. 5. Downsize or tree change

I know of several people who have achieved financial autonomy by selling their inner-city home and moving to a rural area or just a smaller home.

In some cases such a move resulted in them becoming debt free, which reduced their living costs and granted them considerably more freedom.

As the NBN rolls out, there should be more and more scope for people to work outside of the big cities. When self-driving cars arrive, longer distance travel may be less of an issue too.

Mortgage repayments or rent tend to take up a large part of people’s budgets. As already mentioned, the lower you can get your living costs, the easier it will be for you to retire early.

As a final thought, consider what you will be doing in your early retirement. Is there any chance that what you want to spend your time doing could earn you some money?

As shown earlier, $10,000 of income needs something like $250,000 of investments to produce it on a sustainable long term basis. So if you can earn $10,000 in your early retirement, that’s $250,000 you don’t need to save. Early retirement could be that bit earlier!

Paul Benson is a licensed financial planner and creator of the podcast Financial Autonomy. [email protected]南京夜网

This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this article.

This story Administrator ready to work first appeared on Nanjing Night Net.

Citibank to refund $4.3m to customers

Citibank will repay more than $3.3 million to about 39,500 current and former customers for failing to refund them when they closed a credit card account with an outstanding balance.
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The refunds relate to Citibank, Virgin Money, Bank of Queensland, Suncorp and Card Services-branded credit cards and Citibank Ready Credit loan customers. Citibank is the credit provider for these products.

The Australian Securities and Investments Commission (ASIC) said in a statement the errors had occurred when some accounts were closed as far back as 1994.

Citibank will contact affected customers by November 30. They will receive a refund of the credit balance with interest via a bank cheque or direct credit into their account.

“Customers should be confident that when they close an account, they are refunded any outstanding balance,” ASIC deputy chairman Peter Kell said on Thursday.

ASIC said Citibank reported the issue to the regulator and co-operated to fix it.

Separately, Citibank will refund $1 million to another 4000 customers after misleading them about its responsibilities to investigate unauthorised transactions on their accounts.

ASIC said Citibank had refused customers’ requests to investigate unauthorised transactions because it claimed the requests were made outside a time period permitted by Visa and MasterCard.

“Citibank incorrectly stated that because the request was made outside the timeframe specified by Visa and MasterCard, it was not required to assess the claim, and that the customer’s only options were to approach the merchant or a fair trading agency,” ASIC said.

“The letter would likely have misled customers about their protections under the ePayments Code.”

The ePayments Code provides protections to consumers for unauthorised transactions.

A Citibank spokeswoman said the bank had strengthened its systems to ensure the errors did not occur again.

This story Administrator ready to work first appeared on Nanjing Night Net.

Batting at three won’t harm Maxwell’s Test hopes: Handscomb

Victorian skipper Peter Handscomb does not believe batting Glenn Maxwell at No.3 for the Bushrangers will hamper his chances of hanging onto his spot in Australia’s middle order for the upcoming Ashes series.
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Maxwell hit twin half-centuries coming in at first drop against South Australia in a timely return to form after only making seven and 20 against Queensland in Victoria’s Sheffield Shield opener last month.

Debate has been raging over who will assume the No.6 spot in the Australian line-up for the first Test against England starting November 23 at the Gabba, and it is sure to intensify with another full round of Shield matches commencing on Monday.

Hilton Cartwright, Moises Henriques and bolter Jake Lehmann have all been thrown up as possible contenders for the spot, but if it was up to Handscomb, Maxwell would win the race.

“If he can make runs at three, he can make runs at six so that’s not an issue in terms of if he’s in the Ashes,” Handscomb told RSN radio on Thursday.

“It was more just a team balance with the squad we’ve got.”

Handscomb, who has made a dream start to his Test career with an average of 53.07 in his first 10 matches, said he didn’t need to give Maxwell a pep talk in a bid to solidify his spot in the national side.

“Each individual has their own game plans and I’m not going to tell them how to bat because if they try and change too much from what they know, they’re not going to score and that’s pointless for us,” Handscomb said.

“With ‘Maxi’, we just said, ‘mate, just bat. Go out there and enjoy it’. He always makes runs when he comes back to Victoria in the long form, he’s got a great average for us with the red ball so we weren’t too worried and we’ve given him his opportunity at the top and he’s taken it this game which is awesome.”

Meanwhile, Handscomb believes playing against Bangladesh in oppressive conditions on Australia’s recent tour of the subcontinent has served as the perfect preparation for his first Ashes series.

The 26-year-old lost 4.5kg while batting during the second Test in Chittagong as he crafted a crucial knock of 82 in just over three hours in the first innings.

“It does help knowing that I’ve done that, more just mentally. I didn’t carry on. If it gets hot at the Gabba or if it gets hot in Perth, I can just say, ‘well, it’s not like Bangladesh’. So hopefully I carry on pretty well,” he said.

“Being able to play in different conditions is awesome. You find out things about your game, certain weaknesses or strengths that you have in those conditions and then you know that if you come back to Australia and you see similar conditions, you’ve had the toughest of it so hopefully you can come back and do it in Australia.” iFrameResize({checkOrigin:false},’#ashes-squad-selector-2017′);var frame = document.getElementById(“ashes-squad-selector-2017”);

This story Administrator ready to work first appeared on Nanjing Night Net.